Strength Seen in ArcBest (ARCB): Can Its 9.1% Jump Turn into More Strength?
ArcBest (ARCB) was a big mover last session on higher-than-average trading volume. The latest trend in earnings estimate revisions might not help the stock continue moving higher in the near...
ArcBest (ARCB) shares rallied 9.1% in the last trading session to close at $121.78. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.6% gain over the past four weeks.
The upside resulted in the stock attaining a 52-week high. The buoyancy was owing to the optimism surrounding the trucking industry. With supply chain woes persisting and demand at elevated levels, trucking rates are increasing. This bodes well for trucking stocks including ArcBest.
This freight transportation and logistics company is expected to post quarterly earnings of $2.19 per share in its upcoming report, which represents a year-over-year change of +125.8%. Revenues are expected to be $1.09 billion, up 33.3% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For ArcBest, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on ARCB going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ArcBest Corporation (ARCB): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research